The Shareholders’ Meeting and the Representatives’ Commission

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The Shareholders' Meeting is the highest authority within the Company, and comprises two shareholders: the Union and Mr. Ren Zhengfei.

The Company's major issues, which involve the decisions of the Union as a shareholder of the
Company, shall be primarily reviewed and decided on by the Representatives' Commission (the "Commission"). The Commission consists of all representatives of shareholding employees ("Representatives") and exercises rights on behalf of all shareholding employees.

Operations of the Representatives' Commission

In 2016, the Commission held two meetings, at which it reviewed and approved proposals on annual profit distribution, capital increases, and long-term incentives, and also voted in a new Supervisory Board.